Uplift at GDT auction offers hope amid falling milk prices

A jump in wholesale dairy values at the Global Dairy Trade (GDT) auction on 6 January will come as welcome news for dairy farmers, following an exceptionally challenging few months for the sector.

GDT auctions are used as an indicator for wider market sentiment and the GDT price index lifted by 6.3% at the latest fortnightly auction to average US$3,533/t (£2,617/t), following nine consecutive price falls.

Prices were up across all dairy commodities, with particular interest for whole milk powder, which lifted by 7.2% and typically accounts for more than half of the total volume sold at the event.

See also: Just 7,000 GB dairy farmers in production as prices slide

Average values for skimmed milk powder, butter and anhydrous milk fat also all made gains.

Almost 30,000t of product was sold at the GDT event, with 177 participating bidders.

EU dairy futures markets also saw some improvement for the first time for several months, with values lifting towards the end of December.

Meanwhile, many UK dairy farmers, already operating at a loss, face further price cuts into February as the sector struggles to control excess milk.

Milk volumes remain high but have eased back marginally, tracking at 4% above last year’s levels at the end of 2025.

UK daily milk deliveries averaged 35.36m litres a day for the week ending 27 December, down by 0.9% on week-earlier levels.

Milk price falls

First Milk will reduce its milk price by 2p/litre to 30.25p/litre for a standard manufacturing litre from 1 February, including the member premium.

Mike Smith, farmer director and vice-chairman, said: “This adjustment reflects the ongoing supply and demand imbalance in the dairy market, which continues to impact our overall returns.

“We fully recognise the pressure these changes place on our members’ farm businesses and remain focused on maximising the value of our members’ milk.” 

Barbers Cheesemakers has made a reduction of 2.06p/litre for February to 34.01p/litre for a standard manufacturing litre.

Last week, Arla announced a 3.5p/litre reduction in January, taking its standard manufacturing litre to 35.73p/litre.

Meanwhile, Muller confirmed a 3p/litre cut to 34.5p/litre for a standard liquid litre in February.